Major Rating Factors:
Weak overall results on stability tests (2.8) including weak financial strength of affiliated Fairfax Financial and weak results on operational trends.
Other Rating Factors:
Good overall profitability index (6.7). Weak expense controls. Return on equity has been low, averaging 1.6% over the past five years. Strong long-term capitalization index (9.8) based on excellent current risk adjusted capital (severe and moderate loss scenarios), despite some fluctuation in capital levels. Excellent liquidity (7.3) with ample operational cash flow and liquid investments.
Stability Factors:
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Comm multi (71.0%), fire (8.9%), personal/comm auto (2.4%), work comp (0.6%), fin guar/surety (0.6%), other (16.6%)
Licensed in:
All states, the District of Columbia and Puerto Rico
Principal Investments:
Investment grade bonds (75.3%), common stock (24.7%)
Corporate Info
Group Affiliation
Fairfax Financial
Investment Rating
--
Company Address
199 Water Street
NEW YORK, NY 10038
NEW YORK, NY 10038
Phone Number
(212) 277-1665
NAIC Number
10936
Website
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